3. Property, plant and equipment
 
Group      2022         2021    
   Cost   Accumulated 
depreciation 
and 
impairment
 
Carrying 
value
 
Cost  Accumulated 
depreciation 
and impairment 
Carrying
value 
Beneficiation assets                   
Smelters  3,842,679  (3,125,430) 717,249  3,677,182  (3,215,202) 461,980 
Pelletising plant  398,629  (352,616) 46,013  396,171  (362,494) 33,677 
Right-of-use assets  31,674  (26,679) 4,995  35,993  (24,301) 11,692 
Corporate assets  4,347  (4,087) 260  4,524  (4,385) 139 
Mining assets                   
Mines  1,355,494  (1,097,018) 258,476  1,282,559  (1,115,226) 167,333 
PGMs processing plant  52,974  (4,996) 47,978  37,975  (219) 37,756 
Total   5,685,797  (4,610,826) 1,074,971  5,434,404  (4,721,827) 712,577 

 

Company      2022         2021    
   Cost   Accumulated 
depreciation
 
Carrying 
value
 
Cost  Accumulated 
depreciation 
Carrying 
value 
Right-of-use assets  533  (533) —  533  (357) 176 
Corporate assets  1,896  (1,469) 427  1,685  (1,382) 303 
Total  2,429  (2,002) 427  2,218  (1,739) 479 

Reconciliation of property, plant and equipment - Group - 2022

  Opening
balance
Additions** Disposals Disposal
accumulated
depreciation
and impairment

Movement in
capital work
inprogress
Reclassifica-
tion to asset held
for sale
Depreciation* Impairment
loss
Total
Beneficiation assets                  
Smelters 461,980 224,460 (241,960) 241,958 182,997 (151,950) (236) 717,249
Pelletising plant 33,677 20,494 (21,340) 21,338 3,304 (11,460) 46,013
Right-of-use assets 11,692 2,081 (6,400) 6,257 (8,635) 4,995
Corporate assets 139 211 (388) 388 (90) 260
Mining assets                  
Mines 167,333 122,752 (56,445) 56,335 7,592 (963) (38,128) 258,476
PGMs processing plant 37,756 16,880 (1,882) (4,776) 47,978
  712,577 386,878 (326,533) 326,276 192,011 (963) (215,039) (236) 1,074,971

Impairment assessment

As a result of an impairment indicator arising from Merafe's market capitalisation being lower than the net asset value at 31 December 2022, management performed an impairment assessment on the basis set out in note 1.17 and note 37. Significant judgement and estimates were made in determining the value-in-use calculation which is further explained in note 37. The recoverable amount was determined by using the value-in-use calculation via a discounted cash flow model. Based on the model the carrying value was higher than the recoverable amount but no impairment was recognised as there was no conclusive evidence to support the loss. An impairment raised against the assets to the value of R0.24m is due to a specific asset having nil economic value.

Depreciation

* R219m depreciation and amortisation is recognised in the statement of profit or loss and other comprehensive income which comprises of R215m resulting from property, plant and equipment and R4m of amortisation resulting from intangible assets.

Change in estimate

** An amount of R92m of change in estimate on the environmental rehabilitation provision is included in the additions for the Group. This is a non-cash item for purpose of the Group's statement of cash flows.

Reconciliation of property, plant and equipment - Group - 2021

   Opening
balance 
Additions  Disposals**  Disposal
accumulated
depreciation
and impairment 
Movement in
capital work in
progress 
Depreciation*  Impairment
loss 
Total 
Beneficiation assets                         
Smelters  223,627  367,335  (102,506) 102,506  (47,095) (76,063) (5,824) 461,980 
Pelletising plant  15,201  13,425  (16,207) 16,207  9,346  (4,295) —  33,677 
Right-of-use assets  16,505  —  —  —  —  (4,813) —  11,692 
Corporate assets  76  107  —  —  —  (44) —  139 
Mining assets                         
Mines  83,210  164,508  (10,684) 10,631  (59,060) (21,272) —  167,333 
PGMs processing plant  —  36,093  —  —  1,882  (219) —  37,756 
   338,619  581,468  (129,397) 129,344  (94,927) (106,706) (5,824) 712,577 

Impairment assessment

As a result of an impairment indicator arising from Merafe's market capitalisation being lower than the net asset value at 31 December 2021, management performed an impairment assessment on the basis set out in note 1.17 and note 37. Significant judgement and estimates were made in determining the value-in-use calculation which is further explained in note 37. The recoverable amount was determined by using the value-in-use calculation via a discounted cash flow model. Based on the model the carrying value was lower than the recoverable amount therefore no impairment adjustments were raised against property, plant and equipment and intangible assets. An impairment raised against the assets to the value of R6m due to specific assets having nil economic value.

Depreciation

* R111m depreciation and amortisation is recognised in the statement of profit or loss and other comprehensive income which comprises of R107m resulting from property, plant and equipment and R4m of amortisation resulting from intangible assets.

Change in estimate

** An amount of R4m of change in estimate on the environmental rehabilitation provision is included in the disposals for the Group. This is a non-cash item for purpose of the Group's statement of cash flows.

Reconciliation of property, plant and equipment - Company - 2022

   Opening 
balance
 
Additions  Derecognition  Depreciation  Total 
Right-of-use assets  176  —  (142) (34) — 
Corporate assets  303  211  —  (87) 427 
   479  211  (142)  (121)  427 

Reconciliation of property, plant and equipment - Company - 2021

      Opening  balance  Additions  Depreciation  Total 
Right-of-use assets     325  —  (149) 176 
Corporate assets     224  107  (28) 303 
      549  107  (177) 479